Thinking About Investing in an Airbnb? What I Learned as a Short-Term Rental Owner in Puerto Rico

By Edmaris Carazo

Turning a property into an Airbnb or short-term rental can seem, at first glance, like a simple way to generate additional income. But after experiencing what it is like to own a short-term rental property, I can tell you there is much more behind a good listing than pretty photos and a nightly rate.

There are numbers to run, rules to verify, maintenance to consider, guests to take care of, and many small details that can make a big difference between a property that is simply listed on a platform and one that actually provides a good experience.

And there is another reality worth recognizing: for some property owners in Puerto Rico, short-term rentals have become an alternative way to generate income while they stabilize their financial situation. For some families, that additional income can help cover part of a mortgage, keep a property that might otherwise be difficult to maintain, or simply buy them some time while going through a difficult financial period.

That does not mean an Airbnb is an automatic solution or that every property will be profitable. That is exactly why you need to run the numbers before investing.

The Short-Term Rental Boom in Puerto Rico

Short-term rentals are not new to Puerto Rico, but their growth over the past decade has been significant.

An analysis by the Center for a New Economy, using AirDNA data, found that between 2014 and 2020, approximately 11,500 hosts had listed about 25,000 properties on Airbnb in Puerto Rico. The analysis identifies 2014 as the starting point for the data used to study the expansion of this market. (grupocne.org)

Since then, Puerto Rico’s tourism market has continued to evolve.

According to Discover Puerto Rico, Puerto Rico received 7.5 million visitors in 2024. Of the non-resident visitors, approximately 1.9 million stayed in hotels, while another 3.8 million stayed in non-hotel accommodations, a category that can include short-term rentals. (discoverpuertorico.com)

More recently, Discover Puerto Rico reported that in 2025, hotels and short-term rentals generated approximately $1.99 billion in lodging revenue, an increase of 3% over 2024. (discoverpuertorico.com)

The market also has a significant presence outside the metropolitan area. In 2024, the western region, which includes places such as Rincón, Cabo Rojo, and La Parguera, accounted for approximately 26% of available short-term rental nights in Puerto Rico, according to AirDNA data shared by Discover Puerto Rico. (discoverpuertorico.com)

In other words: yes, there is a significant industry behind short-term rentals in Puerto Rico. But that does not mean buying any property and putting it on Airbnb is automatically a good investment.

That is where the important part begins.

Before You Buy: Run the Numbers as If the Airbnb Were Empty

This is probably one of the most important pieces of advice I can share.

If you are considering buying a property with the intention of using it as an Airbnb, do not run your numbers based on the best-case scenario.

Run them based on a realistic scenario. How much would your mortgage payment be and how much would you pay for HOA or maintenance fees? What is the cost of insurance? How much would you pay for electricity and water? What does internet cost?

How much will you need to set aside for repairs and maintenance? What is the charge for cleaning between guests?

Are there taxes, licenses, or other costs associated with operating the property? And most importantly: what happens if you have a slower month?

A short-term rental can have excellent seasons and much slower ones. The question should not simply be how much you could charge per night, but how much you need to generate for the property to make financial sense.

It is also important to remember that Puerto Rico has requirements related to short-term supplementary lodging and the room occupancy tax. The Department of Treasury specifically includes “short term rentals” among the establishments subject to these processes and requirements. (hacienda.pr.gov)

Before buying, always verify current requirements with the appropriate agencies.

Does Your Condo or Community Allow Short-Term Rentals?

This is one issue that can save you from a huge problem. Before buying a property with the intention of using it as an Airbnb, check the rules of the community, development, condominium, or building. Do not assume that just because you see other apartments listed on Airbnb, you can do it too.

Ask specifically:

• Are short-term rentals allowed?
• Is there a minimum number of nights?
• Are there restrictions on the number of guests?
• Are there rules regarding visitors?
• Are there restrictions on pets?
• Is guest registration required?
• Is there an additional fee for owners who use their property as a short-term rental?

Some condominiums or communities may impose fees related to this type of rental to help cover the increased use of common areas and services. Elevators, gyms, pools, parking areas, and other spaces may experience different levels of use when a property regularly receives guests.

Do not rely solely on what the seller tells you. Read the documents and speak directly with the appropriate management or board before closing on a purchase.

Don’t Forget the Legal and Tax Side

Before welcoming your first guest, there is another part of the business you cannot overlook: complying with the laws, regulations, and tax obligations that apply to your property.

Operating a short-term rental does not simply mean listing a property on a platform and starting to receive reservations. Depending on the type of property and how you operate it, there may be registration requirements, licenses, permits, tax collection and remittance requirements, as well as other obligations you need to understand.

In Puerto Rico, the Department of Treasury establishes specific requirements for short-term supplementary lodging and addresses the room occupancy tax. That is why, before you begin operating, it is important to check directly with the appropriate agencies to determine the current requirements for your property and stay up to date with your tax responsibilities. (hacienda.pr.gov)

You should also keep in mind that rules can change and that not all properties have exactly the same obligations.

So, if you are seriously considering turning a property into a short-term rental, it is worth speaking with a certified public accountant (CPA) or a professional who understands the rules applicable to this type of business.

Ask, among other things:

• How should I report rental income?
• What taxes apply to my operation?
• What expenses can I document as business expenses?
• What records do I need to keep?
• What information should I receive from rental platforms?
• Do I need to register or obtain a license or permit?
• Are there additional obligations depending on where the property is located?
• How should I handle the occupancy tax?

And keep your documents.

Contracts.

Invoices.

Receipts.

Maintenance expenses.

Purchases for the property.

Utilities.

Cleaning payments.

Platform commissions.

Management fees.

Everything.

Don’t wait until tax-filing season to try to reconstruct how much you spent during the year.

It’s a good practice to maintain, from day one, an account and record-keeping system that allows you to clearly separate income and expenses related to the property. This not only makes the tax side easier; it also allows you to know whether you are actually making money.

Because remember: income is not the same as profit. You can receive $3,000 in reservations during one month and, after the mortgage, HOA, electricity, water, internet, cleaning, maintenance, commissions, taxes, and other expenses, discover that your actual profit is much lower.

Knowing that number is essential before making decisions about your property.

And one final recommendation: platforms can make operating a short-term rental look very simple, but the responsibility to comply with the laws and obligations that apply to your operation does not disappear because the reservation came through an app.

Do your homework. Ask questions. Document everything. And stay up to date. Rules can change, so always verify current information with the appropriate agencies and with your tax or legal professional.

Pets: Yes or No?

This is a decision you should make from the beginning.

Allowing pets can open your property to an additional group of travelers, but it also means thinking about cleaning, hair, odors, possible damage, and clear rules.

If you decide to accept pets, establish your conditions from the beginning and communicate them clearly in the listing.

If you do not accept them, that should also be clear.

Will You Manage It Yourself or Hire Someone?

This is another important decision.

Managing your own Airbnb means that a larger portion of the income can stay with you, but it also means that the responsibilities are yours.

And there are many.

Reservations.

Messages.

Guest questions.

Check-in and check-out.

Cleaning coordination.

Maintenance.

Repairs.

Problems with the air conditioning.

A water heater that stopped working.

A lock that won’t open.

A guest who arrives late.

An emergency.

And all of this can happen on a Saturday night.

If you decide to hire a manager or property manager, you will have an additional expense, but you will also be buying time and peace of mind.

As a general market reference, different short-term rental management guides place full-service management fees frequently around 15% to 25% of gross revenue, although they can be higher or lower depending on the market and the services included. (gowithsurge.com)

That is why you should not compare percentages alone. Ask what the fee includes. Do they handle reservations, answer messages 24/7, coordinate cleaning, handle emergencies, oversee maintenance?

Do they optimize pricing, manage the listing, take the photographs?

Are there additional fees?

Who pays for repairs and who has control of the account and reviews?

Everything should be clearly spelled out in writing.

An Interesting Advantage of Working with a Property Manager

Some property managers already have experience managing multiple properties and may be Superhosts on platforms such as Airbnb. That can mean they have experience, processes, and knowledge that would take a new owner time to develop.

But there is one question I would always ask before signing: what happens to the listing and the reviews if you ever decide to end the relationship?

Your property should remain your property, digitally as well as physically.

Be a Guest Before Hiring the Manager

This is one of my favorite tips.

If you are considering hiring a company to manage your property, find a property they already manage and stay there as a guest.

Experience it yourself. How was the communication? Were the instructions clear? Did check-in work? Was the property clean? Were there enough towels? Did the air conditioning work? Was the Wi-Fi good? Did you find what you needed?

Was the experience really what they promised in the listing?

It is very different to hear a company say that it provides an excellent guest experience than to experience it yourself.

Review the Property Through Hotel Eyes

A property used as a short-term rental experiences a different level of use than a home occupied by a family.

That is why, if you are evaluating a property for this purpose, pay special attention to the electrical system, plumbing, air conditioning, water heater, appliances, locks, doors, and anything else that may require frequent maintenance.

A small problem that you can deal with when it happens in your own home can become an emergency when you have a guest who arrived for three nights.

The question is not simply, “Is it pretty?” It is also: “Is it prepared to receive different people over and over again?”

Photos Can Make or Break Your Listing

One of the investments I consider essential is hiring a good photographer. Photos are one of the first things a person sees when looking for a place to stay.

A property can be beautiful, but if the photos are dark, poorly framed, or fail to show its best features, you are probably not presenting its full potential.

And it is not simply about taking pretty pictures. It is about telling a story. What makes your property special? Does it have an amazing view? Is it close to the beach? Does it have a truly well-equipped kitchen? A comfortable bed or a sleeper sofa that allows you to accommodate more people? Beach chairs and a cooler? A coffee maker that makes good coffee? Space to work? A terrace where you can have coffee in the morning?

Think like a guest. What would you look for?

Storytelling Sells, Too

This is where a short-term rental stops being simply “a two-bedroom apartment” and begins to become an experience.

Do not simply say:

“Fully equipped kitchen.” Explain what that means.

A kitchen where you can make breakfast before heading to the beach.

A space where a family can prepare dinner after spending the day exploring the west.

A coffee maker to start the morning with Puerto Rican coffee.

A cooler to take drinks to the beach.

These are small details, but they help the guest imagine themselves there. The description should help the person visualize their stay.

And this is where artificial intelligence can be a useful tool. You can use it to help identify keywords related to your area, improve the structure of a description, find more natural ways to present your amenities, and think like a traveler searching for a place to stay.

That said, the information must be true. Do not invent amenities, distances, or experiences to improve SEO.

Know Your Market and Your Comparables

Before setting your price, look at properties similar to yours. Do not compare a studio with an ocean view to a four-bedroom house.

Look for properties that are similar in:

• Location
• Number of bedrooms
• Number of bathrooms
• Guest capacity
• Amenities
• Pool
• Parking
• View
• Proximity to the beach
• Kitchen
• Outdoor spaces
• Overall quality of the property

Your competition is not necessarily the Airbnb five minutes away. It’s the property a guest can choose instead of yours.

Decorate Like a Rental Owner, Not Like It’s Your Own Home

Here I learned something important: practicality should come before personal taste. Yes, we want the property to look nice. But we also want it to survive.

In a short-term rental, furniture and accessories receive much more use than they do in a family home. Look for furniture that is durable, easy to clean, and easy to replace.

Glass wine glasses? They can be beautiful. But you may also need durable glasses that can survive a guest carrying a drink to the pool.

The same applies to sofas. A beautiful sofa that is difficult to clean can become a nightmare. Look for materials that can tolerate spills and frequent use.

Think About Accessibility and Families, Too

If your property has features that make it easier for people with limited mobility to access and use the space, say so clearly.

If you have a crib or can provide baby items, include that information. Some travelers specifically look for properties that make traveling with children easier.

If you are near the beach, think like someone who is coming to spend the day there. Do you have beach chairs, beach towels, a cooler, pool noodles, a tote bag?

Not everything has to be expensive. Sometimes a simple detail is exactly what makes a guest say: “They thought of everything.”

What Colors and Materials Should You Choose for Sheets and Towels?

There is a reason many hotels use white linens. White makes it easier to detect stains and can be washed and treated consistently. Experts recently cited by The Spruce also point out that white sheets and towels can convey a visual sense of cleanliness and simplify certain laundry processes. (thespruce.com) But there is a reality: white sheets also show absolutely everything: sunscreen, makeup, and other products can leave difficult stains.

So regardless of the color you choose, prioritize materials that are durable, comfortable, and easy to wash, and have enough replacement sets.

And there is one thing that, to me, is mandatory: mattress protector. Do not skimp on this. A good protector can help protect one of the most important investments in your property.

Make Life Easy for the Guest

A good experience does not always depend on something spectacular. It often depends on the person finding exactly what they need.

Think about a simple breakfast: coffee, milk, sugar, salt, pepper, oil, water, ice.

You do not need to turn the kitchen into a supermarket. But providing a few basics can make a huge difference for someone who arrived late and does not want to go back out.

The same goes for the bathroom: hand soap, shampoo, conditioner, enough toilet paper.

And in the kitchen: new sponge, dish soap, paper towels, trash bags.

These are small details that the guest remembers.

Don’t Be Afraid to Post Instructions

As a property owner, there is something you need to accept: at the end of the day, you are paying for many of the things the guest uses. Electricity, water, air conditioning. Repairs, maintenance.

That is why clear instructions can help protect your investment. You can have small reminders, in Spanish and English, such as:

“Turn off the lights when you leave the room.”

“Turn off the air conditioning when you leave the property.”

“Keep doors and windows closed when the air conditioning is on.”

“Please do not flush anything other than toilet paper.”

And speaking of bathrooms: think about trash can capacity. A trash can that is too small can encourage guests to try to make too much paper disappear down the toilet. And a good-sized trash can and a clear instruction can save you from having to call a plumber.

A Small Welcome Gift Can Say a Lot

You don’t need to spend a fortune. A small bag of local coffee, a sweet treat, a small Puerto Rican product, or something related to the area.

The idea is for the guest to feel like they have arrived in Puerto Rico, not simply at another apartment.

That said, if you include food, consider possible allergies and provide the appropriate ingredient information when necessary.

Create Something People Want to Photograph

We live in the age of Instagram and TikTok. A property can benefit tremendously from having a memorable visual element. It could be a mural, a neon sign, a funny phrase, a swing, a distinctive sofa, a wall with an eye-catching design, or aparticularly beautiful corner.

It doesn’t have to look like a theme park. But it can have one small element that makes someone say “I have to take a picture here!”

And if the guest shares that photo, your property can get organic exposure that you didn’t have to pay for.

Have a Checklist Before Every Check-In

This advice may sound boring, but it is one of the most important. It does not matter whether you manage your property yourself or have a company managing it: there should be a checklist.

Before every arrival, someone should verify:

Cleaning

• Are the sheets clean and stain-free?
• Are the towels clean and stain-free?
• Are the mirrors spotless?
• Are the floors clean?
• Are the bathrooms completely clean?
• Do the trash cans have new bags?

Electricity and Air Conditioning

• Do all the light bulbs work?
• Are the air conditioners cooling properly?
• Do the remotes have batteries?
• Is there any unusual noise or problem?

Water and Plumbing

• Does water run properly from all faucets?
• Do the toilets flush properly?
• Do the showers have good water pressure?
• Are there leaks?

Kitchen

• Is there coffee?
• Sugar?
• Salt and pepper?
• Oil?
• New sponge?
• Dish soap?
• Paper towels?
• Do the appliances work?

Internet

• Is there WiFi?
• Does it work properly?
• Is the password visible and easy to find?

For the Guest

• Is there enough toilet paper?
• Is there hand soap?
• Shampoo and conditioner?
• Is there cold water in the refrigerator?
• Is there ice?
• Are the beach chairs clean?
• Are beach towels available?
• Is the information about taking out the trash clear?
• Are special instructions for appliances available?

That checklist can become your best friend.

Think Like a Guest

This is probably the rule that brings everything above together. Before listing your property, walk into it as if it were your first night.

• You arrived tired. What do you need?
• You want to make coffee. Can you?
• You want to take a shower. Is there hot water?
• You want to connect your phone. Where is the WiFi?
• You want to go to the beach. Where are the chairs?
• You want to cook. Are the basics there?
• You want to sleep. Is the bed comfortable?
• You want to know what to do tomorrow. Are there recommendations?

The experience begins long before the guest leaves a review.

And Don’t Forget to Sell the Place Where You Are

A property does not exist in isolation.

If you have an Airbnb in Rincón or any other town in the west, part of what you are selling is the destination.

Give your guests ideas.

Beaches.

Restaurants.

Cafés.

Activities.

Sunsets.

Places to visit.

Events.

Small local businesses.

And here there is a wonderful opportunity to connect your property with the community.

You can leave a note on the refrigerator inviting your guests to follow WhatsUp Rincón to discover what is happening in Rincón and throughout western Puerto Rico.

Because the best memory of a trip is not always simply where you slept.

Often, it is what you discovered while you were there.

Airbnb Isn’t Easy Money: It’s a Business

After experiencing it myself, one of the things I am most certain about is that a short-term rental should not simply be viewed as a property that “rents by the night.”

It is a hospitality business.

And like any business, it requires numbers, planning, marketing, customer service, maintenance, and attention to detail.

For some people, it can become an important source of income. For others, it can help cover some of the expenses of a property while they go through a particular financial period. And for others, it may simply not be the right model.

The key is not to buy first and ask questions later.

Ask the questions first.

Know the rules, your costs, your market, and your competition.

Think about the guest.

And, above all, be realistic about the numbers.

Because a beautiful property can get reservations. But a well-planned, well-managed property designed from the guest’s perspective has a better chance of building a strong long-term reputation.

And in the world of short-term rentals, that reputation can be worth a lot.

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Sources and Data

Discover Puerto Rico, “Puerto Rico Tourism Breaks Records in 2025, Sets the Stage for 2026.” (discoverpuertorico.com)

Discover Puerto Rico, “Research Update: Puerto Rico Tourism Reaches $18B Economic Impact in 2024.” (discoverpuertorico.com)

Discover Puerto Rico, “Research Update: Short-Term Rental Recap & Market Predictions.” (discoverpuertorico.com)

Center for a New Economy, analysis of short-term rentals in Puerto Rico using AirDNA data. (grupocne.org)

Puerto Rico Department of Treasury, requirements related to licenses and short-term supplementary lodging. (hacienda.pr.gov)

The Spruce, analysis of the use of white linens and towels in hospitality settings. (thespruce.com)